Page 52 - Regional_rice_report_with_full_bookmarks

PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

products of these countries are milled and polished rice, accounting for a large
proportion of the import structure.

Competition: This market is dominated by India, which accounts for 77.47% of
the export market share with many brands. In the remaining nearly 30% market share,
Pakistan accounts for 7%, the US and Thailand account for 7%, and Viet Nam only 3%.
The Middle East market has a very high concentration (HHI = 6046), indicating a low
level of competitiveness for new entrants.

Market requirements: Although there is a regional agreement among some
countries in the Middle East, there are no regional requirements, which means each
market acts for its own benefit. Kuwait, the highest market in the Middle East, has
applied 0% on rice products for almost all countries in WTO (Table 7). However, there
are up to 80 requirement regulations for rice to be imported to this country. Some of
the requirements are related to culture, region, and policies.

Market potential: Despite being the world’s largest rice market in terms of both
quantity and value, Thailand, Viet Nam, Lao PDR, and Cambodia have only a moderate
potential to access it. The fundamental reason for this is that the rice production
orientation in ASEAN and the rice tastes on the market are not the same. Consumers
favor Basmati rice products in this market. Basmati rice has a distinct odor, expands
more after cooking, and is less sticky. This is also a popular Indian and Pakistani dish
(Suwannaporn & Linnemann, 2007). Asian countries, on the other hand, like round
and sticky grains. As a result, Thailand, and Viet Nam, out of the four nations, have the
resources to promote white rice and fragrant rice as niche markets, marketing and
targeting clients in these markets.
Table 20: Import requirements for rice by Kuwait

Cambodia Lao PDR Thailand Viet Nam
MFN duties (Applied) 7 0% 0% 0% 0%
Number of tariff lines 4 4 4 4
Number of import requirements
measurements 80 80 80 80
Some of the main requirements
+ Quality requirement Followed by requirements issued by The Gulf
Cooperation Council - GCC ISO
There are no requirements of traceability, however, it
+ Traceability requirement is required to supervise, label, package, certify, and
transport
+ Prohibited provision owing to culture, religion, and
+ Others politics
+ Quarantine provision: there is no absence of pests

Source: Authors’ compilation from International Trade Centre and customs
of each country.

7 Converted by ITC using Ad Valorem Equivalent method

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